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Coinbase has reduced the breadth of its subpoena directed at Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC).
Rather than pursuing access to Gensler’s private communications throughout his entire career, the exchange has opted to limit its inquiry to his communications during his time as SEC Chair.
Initially, Coinbase’s legal representatives contended that acquiring Gensler’s private messages, both prior to and during his chairmanship, was vital for their defense in the ongoing lawsuit initiated against them by the securities regulator.
Coinbase Modifies its Subpoena Request
In a submission on July 15, Coinbase disclosed its choice to modify its subpoena request, considering Judge Katherine Polk Failla’s concerns expressed the previous week.
“Regarding the subpoena to Mr. Gensler, Coinbase has decided to request the production of Mr. Gensler’s documents solely for the duration of his tenure as Chair of the SEC,” the submission indicates.
Gensler took on the role of SEC Chair in April 2021, and Coinbase’s revised strategy now corresponds with the specific period of Gensler’s chairmanship.
Initially, Coinbase had sought access to Gensler’s communications dating back to 2017, a year before he began teaching a “Blockchain and Money” course at the Massachusetts Institute of Technology in 2018.
Coinbase argued that grasping the development of Gensler’s perspectives on crypto-related regulatory issues was essential to their case.
Judge Failla, however, voiced concerns regarding the burden of inquiries into Gensler’s statements prior to his assumption of the SEC Chair position, showing hesitation to approve Coinbase’s original request.
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Coinbase is expected to file its opening brief for the motion to compel by July 23, while the SEC will have until August 5 to respond.
Coinbase Sued by the SEC
The SEC initiated a lawsuit against Coinbase in June 2023, claiming that the exchange breached federal securities laws by listing 13 tokens it deems to be securities.
The agency asserted that Coinbase had functioned as an “unregistered securities broker” since 2019, nearly two years before its initial public offering in April 2021.
Coinbase continues to assert that the tokens available on its platform should not be categorized as securities, maintaining that they lie outside the jurisdiction of SEC regulations.
Recently, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of improperly hindering its document requests.
The exchange claims that the regulators are obstructing access to documents that should be accessible under the Freedom of Information Act (FOIA).
In the meantime, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, increasing its price target for Coinbase to $217 from $110.
In addition to Bank of America, investment banking firm KBW has also raised its price target for Coinbase.
In a research report, KBW elevated its Coinbase price target from $160 to $230 while maintaining its market performance rating.
The post Coinbase Narrows Subpoena to SEC Chair Gensler, Focuses on Communications During Tenure appeared first on Cryptonews.
